For decades, drive-time radio dominated morning and evening commutes. But that era is ending. The rise of on-demand audio, podcasts, and streaming is fundamentally changing commuter listening habits. Thereby changing media buying.
Here are three key signs that traditional radio is being replaced with podcasts, because it’s losing its grip on in-car audiences.
1. Global In-Car FM Radio Usage is Declining
AM/FM radio as the in-car audio source is gradually diminishing across the globe, especially among the high value Gen Z. Here are four concrete stats from different parts of the world that show a consistent downward trend in traditional radio consumption
- US: Weekly terrestrial radio listenership has decreased from 89% in 2019 to 82% in 2022. Among 18 to 34-year-olds, only 45% of listening time is dedicated to radio broadcasts, with the remaining time split between podcasts and streaming. *1
- Germany: As of 2024, 75% of radio listeners in Germany now use digital services such as DAB+ and web radio, reflecting a significant shift from traditional FM/AM radio to digital formats. *2
- Australia: Radio listening time has declined by 9% over the last 5 years, with a steeper 13% drop among 25–39-year-olds.*3
- Taiwan: Radio listenership fell over 40% across 9 years. In 2024, 60% of people hadn’t listened to radio at all in the past 6 months. *4
2. Integration of Connectivity Features in New Vehicles
Modern vehicles are increasingly equipped with advanced connectivity features. Android Auto and Apple CarPlay Integration systems allow drivers to connect their smartphones directly to their car’s infotainment system, providing easy access to streaming services and podcasts.
Development of in-vehicle apps by enable direct streaming without the need for smartphone integration. For instance, PRISA Media has launched apps for Renault’s new models, allowing drivers to access podcasts and other digital audio content directly through the car’s system.
Data shows that 38% of people listen to podcasts while driving, marking a 6% increase from previous years. *5
3. Podcasts Are Becoming the New Drive-Time Habit
As the technology to access on-demand audio becomes more embedded in cars, people are actively choosing podcasts over radio. This is especially true for younger, digitally native audiences, who are shaping the future of in-car listening.
- 65% of podcast listeners say they listen while driving, making the car one of the most common podcast listening locations. *6
- 72% of Gen Z’s audio consumption is digital, with podcasts and streaming accounting for the majority — meaning radio is already losing this next generation of consumers. *7
- Podcast listeners also consume more audio overall, with studies showing they listen to 20% more total audio content compared to non-podcast listeners. *8
Why This is Good News for Advertisers
As traditional drive-time radio declines, podcasts and digital audio offer more effective and measurable ad opportunities:
Podcast listeners pay attention: They are 3.5 times more likely to actively listen to ads compared to radio listeners. *9
Higher purchase intent: 43% of podcast listeners have made a purchase after hearing an ad, compared to 26% for radio. *10
Better ROI: Podcasts deliver a 4.2x return on ad spend, outperforming radio (3.5x) and even social media (3.6x). *11
Final Thought: It’s Time to Rethink Drive-Time Advertising
Brands relying on radio time slots need to shift to always-on podcast campaigns to capture today’s commuter audience. With more engagement, better targeting, and trackable results, podcast advertising isn’t just an alternative—it’s the future of in-car audio.
Ready to reach the modern commuter?
Check out our complete guide to radio vs podcast advertising, and learn how to switch your radio budget to digital audio effectively.
Ready to go? Launch your first podcast campaign with AdManager.fm — it’s free to get started. Create your audio ad, build your campaign, and choose your audience in just a few clicks. Like what you see? Go live and track real-time results including reach, impressions, and listen-through rates. No expertise needed — just powerful, targeted audio ads that work.
SOURCES:
*1 – Pew Research Center and Forbes
*2 – World DAB
*3 – Digital Radio International Market Report
*4 – Taiwan National Communications Commission
*5 – National Public Media, 2023 Spoken Word Audio Report
*7 – SiriusXM Media study
*8 – On Audio Blog, Matt Deegan
*9 – SiriusXM Media, citing Podsurvey Podcast User Study
*10 – Sounds Profitable (cited in Podcast Host)
*11 – Acast ROAS Study
